The global obesity treatment market is increasingly dominated by glucagon-like peptide-1 (GLP-1) drugs, leading to a fierce competition among major players. In response, South Korean biotech companies are opting for a different approach, focusing on localized fat reduction treatments targeting specific areas such as the chin, abdomen, and arms.
GLP-1 Duopoly Solidifies, Creating a Virtual Monopoly
According to industry reports, Eli Lilly's Mounjaro and Novo Nordisk's Wegovy have effectively divided the obesity drug market, leaving little room for other competitors. In the past year alone, the combined sales of these two GLP-1 drugs reached $67.7 billion, establishing a monopoly in the overall obesity treatment sector.
The market is experiencing rapid growth. Eli Lilly reported second-quarter sales of $22.97 billion, a 48% increase from the previous year. Novo Nordisk's sales during the same period reached $12.13 billion, marking a 7% rise year-over-year.
For Novo Nordisk, the combined sales of Wegovy and Ozempic amounted to $7.86 billion. Eli Lilly's Mounjaro alone generated $9.94 billion in sales during the second quarter, while its other product, Zepbound, saw a 46% increase to $4.93 billion. The total sales of these two products reached $4.87 billion.
K-Bio Targets the Follow-Up Market with Localized Fat Dissolution
With two industry giants armed with massive capital and overwhelming clinical data dominating the market, experts believe it is nearly impossible for latecomers to compete directly. Instead, South Korean biotech firms are focusing on the localized fat dissolution market, which aims to reduce fat in specific areas rather than promoting overall weight loss.
According to market research firm Veripride Market Research, the global market for fat-dissolving injections is expected to grow from $3.8 billion in 2024 to $8 billion by 2032. While this market is smaller than the anticipated $48.8 billion growth in the GLP-1 sector by 2030, it presents a lower barrier to entry and increasing demand for body contouring post-weight loss.
Some companies have already demonstrated success through sales. Medytox reported second-quarter sales of 68.7 billion won from its fat improvement injection, Newbeau, an 11.4% increase from the previous year. Newbeau is the world's first injection containing cholic acid (CA) and has been approved as South Korea's 40th new drug.
GC Green Cross Wellbeing announced that its next-generation fat-dissolving drug, RZL-012, developed in collaboration with Israel's Raziel Therapeutics, met key endpoints in a Phase 3 clinical trial for adults with double chins in China. RZL-012 is designed to irreversibly destroy targeted fat cells, requiring only 1-2 injections to induce fat reduction in localized areas.
Daewoong Pharmaceutical is conducting investigator-led clinical trials with 365mc to expand the indications for its fat-dissolving injection, Violet, to include areas such as the front armpit fat. Violet was the first chin fat improvement injection approved by the Ministry of Food and Drug Safety in 2021 and operates by irreversibly destroying fat cells.
Industry insiders note, "While global giants are pouring trillions into the overall weight loss market, the South Korean biotech sector is making its move in the localized fat dissolution market."
* This article has been translated by AI.
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